Letter from 2010-11 Chairman, Steve Foley, Jr.

Just when the challenges we experienced through the past several years showed signs of easing over the past 12 months, it appears our economy is now destined to endure yet another roller coaster ride. With a little luck and continued creativity, though, I'm optimistic that the trend will continue. I believe that the resilience of auto dealers is simply remarkable and I have been proud to stand shoulder-to-shoulder with you through my years on the CATA Board of Directors and as your chairman. Like most of us, it seems like a dream to me at times- and sometimes not a very good one. But the good news is that our resolve to find new ways to address our challenges will continue and, ultimately, overcome the adversities we've encountered.

 

I felt strongly that the confusion many dealers were experiencing-and continue to experience-with Illinois Department of Revenue issues needed to be addressed. I asked for a seminar to be given by DOR leadership with our dealers to help clarify as many issues as possible. We also wanted to leave no doubt with the department leadership that there is still work to be done. The room was packed and required us to conduct the first-ever Internet-streamed seminar in our association's history to allow dealers and their staffs who wished to "attend" this very informative and important gathering without leaving their dealerships.

We didn't solve all of the problems, but we got a darn good start. If you would, please take a moment to read CATA Legal Counsel Dennis O'Keefe's overview of how our group opened up discussions and increased lines of communications with the Illinois Department of Revenue. That report appears on page 24.

 As I look back over the year, I think of the "ripples" that have caused our businesses to adapt and sometimes fully change. As an example, regulations were proposed that would add $500 to the price of an annual dealer license to endow a fund for people harmed when a dealership closes without settling liens on trade-ins. The resolution to fixing the problem wasn't perfect, but it could have been worse.
Directors of the Chicago Automobile Trade Association and the Illinois Automobile Dealers Association helped shape the bill and added a few pro-dealer components to House Bill 880 that the lower chamber passed 91-19 on April 15, and was subsequently signed by Governor Quinn in August.
The attorney general's office sought to create the Dealer Recovery Trust Fund after being contacted by a number of consumers in recent years who were harmed by the unpaid liens. Assistant Illinois Attorney General Greg Grzeskiewicz cited consumers who subsequently saw their credit scores damaged while they were saddled with two vehicle loan payments. Grzeskiewicz added that Illinois is the only state without a recovery fund or a bonding mechanism to help those consumers.
Dealers from the CATA and the IADA involved in shaping the legislation were able to steer endowment of the recovery fund toward a hike in dealer licenses and away from more costly surety bonds. We also succeeded at widening the circle of those who could be compensated by the fund to include dealers who similarly can be harmed by unpaid liens on dealer trades. Among changes to the House bill, a three-member board will be formed to oversee the recovery fund. It will consist of Secretary of State Jesse White and Attorney General Lisa Madigan, or their delegates; and someone selected by White and Madigan or their delegates to represent Illinois automobile dealers.

It's hard for me to single out any particular committee, as each board member does far more than attend one meeting per month. Most board members also sit on several committees that conduct meetings at least monthly at the CATA-and even more "phone time" to accomplish the business of the association. To each of them I owe a sincere debt of gratitude and respect for all they do. Whether it's labor negotiations, member benefits, our political agenda, or any others of a dozen active committees, they're out doing the job for the betterment of all dealers. When you see these fine people, know that they're fighting the good fight for all of us.

We should remember, too, the lesson we learned as dealers from the first day we got into the business: You can't say thank you enough. The same would be applicable for our colleagues at the CATA headquarters. For nine people to pump out the amount of work and productivity they do on a year-round basis, and for implementing what is unarguably the finest auto show in North America, well, let me simply and deeply say thank you. We've got some tremendously talented people working for us every day.

As a son of a former CATA chairman, I was often drawn back to my younger days when my father would not be home when he was doing association business. He taught all in our family to always give back and to be grateful. I'm pleased to have served my fellow dealers and I'm particularly proud of my father and the mark he left on the CATA and the Chicago Auto Show.

Thank you for your continued support and I'll see you at McCormick Place in February to celebrate yet another of a great series of auto shows.

Sincerely,
Steve Foley Jr.